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Follow Financial Data Personally For A Healthy and Stable Growth

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A brand new company should follow financial data closely for a healthy and stable growth. The weakness in financial management is one of the major facts which prevent the growth of company. A fast growth out of control shall cause extremely serious problems for a brand new company.

Increasing sales volumes and created profit are usually like a mirage during the growth of company.  It is highly possible to confront extremely serious problems within near future for a fast growing company. The company confronting such problems usually decreases the number of employees, searches for a partner or sells the company in order to find a solution. The problem is almost same for such companies: Insufficient level of cash flow, lack of sufficient capital to continue the business and loss of control.

There have always been solutions for such problems but those solutions are torminous. For this reason, the best solution is to take required proactive precautions at the beginning in order to avoid such problems. 

Last Updated on Monday, 07 November 2011 22:10 Read more...
 

Formula : Innovation and Change by Means of Entrepreneurial Spirit

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The essential requirement within crisis and chaos periods, where many fluctuations shall be occurred, is to perform changes. The change process is both difficult and torminous. It contains significantly huge risks and also requires extra-ordinary effort, and ambition to work.

Unless all executives within the organization make sufficient level of effort, the future of the business cannot be relieved. In such cases, it is only possible to survive by both making innovations through different ways of thinking and also, creating changes.

The organization, which aims to create a change, should have an entrepreneurial spirit in every cell of its body. Common policies and applications should be reviewed in all departments of the organizations and also be revised immediately in accordance with current conditions.

The crisis has now been a part of our lives recently. Since all departments of organization move towards the same direction, the desired change can be reached. If the departments move towards to different directions, resultant of organizational change shall drift off the course.

Constant effort and caution shall be required in order to operate something continuously. Each organization shall confront daily crisis. Such crisis should be resolved by correct procedure in an immediate way without any delay.  The members of the organization, who struggle against daily crisis, sometimes, shall not be open to the innovations. However, the organization must feed innovation culture for its future. The quote of “Every crisis is also an opportunity” is not balderdash. The entity, which is used to convert every crisis into the opportunity, shall be able to internalize this culture. It feels the change by its whole body and roots. It gains strength and become resistant against storms, in due course.

It is very useful that top management shall have a special structure in order to prepare the organization for the future. Innovation and change shall be constantly dealt with this structure and the executives of this structure shall have full-authority, since the future belongs to the innovation and change. Each brand new idea and investment shall be incubated, closely followed up and prepared for the future. Special effort shall be made in order to prevent new ideas to get lost among daily routines within the organization, if deemed necessary; it shall be formed as a separate business unit.

The organization should govern current and new businesses by means of entrepreneurial spirit and feel innovation and change in every cell of the entity.

M.Ayhan Dayoglu

Last Updated on Tuesday, 23 November 2010 21:06
 

What Does My Customer Want?

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One of the essential elements of the society is commercial company. The company, which is generally considered that serving for its own profit, mostly serves to the society.  Unless the company creates benefits for the society, it cannot find any customers for its products, no matter which target and organizational structure it has.

 Consumer shall not buy the supplied product itself but the benefits of the product. The companies, which are not able to create benefits for customers, can only follow the economical fluctuations like a leaf drifting away with the wind, but not keep the control in hand. Those companies can make sales while the market is growing; however, it has to face the risk of destruction during shrinkage periods. If they are lucky enough, they will be able to overcome shrinkage conjuncture and wait for the next boom trend.

Customers constitute the foundation of the company and contribute its existence. The purpose of a successful company is consistently to create new clients. The company with a purpose of creating new clients shall have marketing and innovation as main functions.

The companies, which will be able to survive in the future, shall be marketing-oriented instead of production-oriented. The marketing function shall ensure the company to become distinct from its competitors and to grow continuously. Market-orientation means giving priority to the consumers. For this reason, the management style and operation of the company shall be changed. The executives of the market-oriented company set their employees free and support them to take more responsibility regarding their jobs. The management also focuses on market and customer needs rather than internal affairs. Such company becomes a pioneer for the other companies.  It may also be able to influence the government and other state institutions, non-governmental organizations and media by means of its powerful and persuasive executives.

Last Updated on Sunday, 22 August 2010 09:22 Read more...
 

Expanding by Production Sharing

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Developed countries have fulfilled their basic needs and they are going after the high information and technology now. In these countries, the capital stock and the management information and experiences has reached a high level, the labor requirement has changed from labor-intensive into knowledge intensive. There’s a reduction in number of the employees who use intensive labor to provide input to the production here; thus the companies that have developed technology, saved background and experiences have difficulty in the increase of capacity since they can’t find employees at the top positions they reached.

In contrast to the case in developed countries, the capital stock and the management information and experiences are still limited in developing countries. To sustain the development here, the most important issue that should be solved is to increase the value-added production. In order to increase production, first the domestic consumption should increase and for that to happen, the employment and conclusively the internal revenue should be raised. Raising the internal revenue depends on the exportation and the exportation depends on the internationally accepted product and to procure acceptance of the product depends on the brand. Creating a brand requires patience, effort and background. The first step of the strategies of developing countries is that they cooperate with the countries creating a brand.

Last Updated on Sunday, 22 August 2010 09:29 Read more...
 

Where is My Capital?

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In bright periods when sales are high, the basic parameters that are important for the company’s health may deteriorate unless they are monitored continuously and very closely. Such deterioration is perceived only if corporate managers follow the parameters in a determined fashion and then the necessary precautions are promptly taken.  If the deterioration remains hidden among daily and urgent business, and the necessary measures fail to be taken; invisible and concealed risks and threats will emerge.

 

 Generally speaking, the management of the basic parameters is the same for all companies. Still, for a company that enters an unstable juncture, internal and external factors begin to change rapidly. In such circumstances, securing the continuity of cash flows becomes the most critical issue. This is to the extent that profits, inventory levels and cash flows are adversely affected during unstable periods. Profits and inventory levels are like rubber balls. They may fall, but once they hit the bottom they will go up again. Cash flow on the other hand is like an iron ball. When it falls it damages the floor and never climb back up.

A stagnation of cash flow means the end of a company. In stock markets, companies are evaluated more according to their cash flow positions than according to the profits they generate. In unstable periods of crisis, the company’s balance sheet is more important than its profit and loss account. Determining the company’s minimum cash requirements and tuning the strategy accordingly are very important for ensuring its survival.

Last Updated on Sunday, 22 August 2010 09:26 Read more...
 

CHANGE

Peter Drucker
To survive and succeed, every organization will have to turn itself into a change agent. The most effective way to manage change successfully is to create it. But experience has shown that grafting innovation onto a traditional enterprise does not work. The enterprise has to become a change agent. This requires the organized abandonment of things that have been shown to be unsuccessful, and the organized and continuous improvement of every product, service, and process within the enterprise (which the Japanese call Kaizen). It requires the exploitation of success, especially unexpected and unplanned-for ones, and it requires systematic innovation. The point of becoming a change agent is that it changes the mind-set of the entire organization. Instead of seeing change as a threat, its people will come to consider it as an opportunity.

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HE HAS CLIMBED TO THE TOP BY DARING TO CHALLANGE THE TIME